For what it's worth, if you are dealing with credit card debt, get in touch with the issuing company. If the CS rep you speak to won't help, ask for a supervisor. No help? Call again the next day. Right now, they are very willing to negotiate. In a default pool, they are only receiving about 5 cents on the dollar, so if they can work it out with you at 20 cents on the dollar, they are ahead of the game. An unfortunate reality, though, is that they sometimes do not negotiate the debt until you have missed a payment or two and they know they are at serious risk of your filing bankruptcy. If you do reach an agreement, make sure they mail or fax you a written copy. Be cautious about agreeing to automatic debiting if your income is not consistent.

For your mortgage, contact the lender as well. They are all under tremendous pressure to assist homeowners right now. The last thing they want to do is add to their default/foreclosure numbers. Some will work with you on a forbearance agreement, which either changes your terms (rate, length of term, etc.), or puts some of your interest on the back-end to reduce your payments for the short-term until your finances (and the economy) stabilize. Put your request for assistance in writing, and document every conversation.

So sorry you are dealing with this. It is incredibly stressful every single day. I hope better days are ahead for your family.